EX-99.1 6 ex991.htm EXHIBIT 99.1 ex991.htm

EXHIBIT 99.1

 
Press Release  Source: Emergent Group Inc.
                                                                                                
Emergent Group Reports Third Quarter Results
 
 
SUN VALLEY, Calif., Nov. 4, 2010 (GLOBE NEWSWIRE) -- Emergent Group Inc. (NYSE Amex:LZR), a leading provider of mobile medical lasers and surgical equipment, announced the following financial results for the third quarter ended September 30, 2010:
 
·  
Revenue decreased 4.8% to $7,594,715 versus $7,981,464 for the prior year's third quarter ended September 30, 2009 as the company noted continued softness in demand for medical procedures and related services affecting various healthcare sectors. However, third quarter revenue was 4.8% higher than the second quarter of 2010. This compared to sequential revenue growth of 2.5% between the second and third quarters of 2009.
 
·  
EBITDA (earnings before interest, taxes, depreciation and amortization) declined 8.7% to $1,919,041 versus $2,101,177 for the prior year period.
 
·  
Net income decreased 14.5% to $710,036, or $0.10 per diluted share, for the third quarter of 2010, versus $830,656, or $0.12 per diluted share, in the prior year period. Diluted weighted-average shares outstanding were lower in the current quarter at 7,045,049 versus 7,089,598 for the prior year period.
 
·  
At the end of the quarter, the company had a cash balance of $7,283,073, amounting to $1.03 per diluted share.
 
 "With Emergent Group's strong position in the marketplace and our strategic focus on sales," said Chairman and CEO Bruce J. Haber, "we were pleased to see sequential revenue growth between the second and third quarters despite the persistent softness that various healthcare sectors have experienced in overall demand for medical products and services. Although the economic downturn has caused some Americans to lose health insurance or postpone certain medical procedures, we continue to believe that not all such procedures can be delayed indefinitely. Thus, we have confidence that the current softness is a short-term phenomenon and we look forward to a recovery in the near future." 
 
"Furthermore," Haber added, "we know that Emergent Group's business model remains attractive in the current economic climate as rentals allow our hospital and physician practice customers to conserve cash and still embrace the latest technologies. Rentals also give equipment manufacturers opportunities to partner with us and thereby extend their distribution channels beyond the typically long sales cycles. Thus, our strategic position and value proposition bode well for the future of Emergent Group."
 
The company reported the following financial results for the nine months ended September 30, 2010:
 
·  
Revenue decreased 3.9% to $22,214,727 versus $23,105,272 for the prior year period ended September 30, 2009.
 
·  
EBITDA (earnings before interest, taxes, depreciation and amortization) declined 0.4% to $6,030,693 versus $6,055,785 for the prior year period. 
 
·  
Net income decreased 5.1% to $2,276,244, or $0.32 per diluted share, for the first nine months of 2010, versus $2,398,919, or $0.34 per diluted share, in the prior year period.  Diluted weighted-average shares outstanding were slightly lower for the latest nine months at 7,020,315 versus 7,059,774 for the prior year period.
 
 
About Emergent Group Inc.
 
Emergent Group Inc., through its wholly owned subsidiary, PRI Medical Technologies, Inc. ("PRI Medical"), provides mobile medical laser and surgical equipment in 16 states on a per-procedure basis to hospitals, outpatient surgery centers and physicians' offices. Surgical equipment is provided to customers along with technical support personnel to ensure that such equipment is operating correctly. PRI Medical currently offers its services in five states in the western United States and 11 states along the eastern seaboard. Emergent Group Inc. is a member of the Russell Microcap® Index. For investor and product information, visit Emergent Group's website, www.emergentgroupinc.com.
 
Forward-Looking Statements
 
Statements in this news release may contain forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1993 and Section 21E of the Securities Exchange Act of 1934. Such statements may involve various risks and uncertainties, some of which may be discussed in the Company's most recent report on Form 10-K and subsequently filed SEC reports. There is no assurance any forward-looking statements will prove accurate, as actual results and future events could differ materially from those presently anticipated.
 

 
 
 
 
 
Emergent Group Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
 
         
   
September 30,
    
December 31,
  
   
2010
    
2009
  
ASSETS
  
(Unaudited)
        
             
Current assets
            
Cash
   $ 7,283,073     $ 7,427,165  
Accounts receivable, net of allowance for doubtful
                
accounts of $98,909 and $83,704
     3,803,026       4,006,123  
Inventory, net
     1,130,668       889,526  
Prepaid expenses
     299,523       380,825  
Deferred income taxes
     257,630       557,630  
Total current assets
     12,773,920       13,261,269  
                 
Property and equipment, net of accumulated depreciation and
          
amortization of $10,304,504 and $9,031,136
     4,681,577       5,545,492  
Goodwill
     1,120,058       1,120,058  
Deferred income taxes
     21,126       21,126  
Other intangible assets, net of accumulated amortization of
                
$372,373 and $300,672
     393,564       455,265  
Deposits and other assets
     82,671       80,992  
Total assets
   $ 19,072,916     $ 20,484,202  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
                
                 
Current liabilities
                
Current portion of capital lease obligations
   $ 1,834,276     $ 1,901,272  
Dividends payable
     --       2,710,817  
Accounts payable
     1,671,098       1,440,122  
Accrued expenses and other liabilities
     2,010,296       2,456,315  
Total current liabilities
     5,515,670       8,508,526  
Capital lease obligations, net of current portion
     1,872,710       2,670,942  
Total liabilities
     7,388,380       11,179,468  
                 
Shareholders' equity
                
Preferred stock, $0.001 par value, non-voting 10,000,000
                
shares authorized, no shares issued and outstanding
     --       --  
Common stock, $0.04 par value, 100,000,000 shares authorized
          
6,897,024 and 6,776,118 shares issued and outstanding
     275,877       271,042  
Additional paid-in capital
     16,753,421       16,507,958  
Accumulated deficit
     (5,786,081 )     (8,062,324 )
Total Emergent Group equity
     11,243,217       8,716,676  
Non-controlling interest
     441,319       588,058  
Total shareholders' equity
     11,684,536       9,304,734  
 Total liabilities and shareholders' equity
   $ 19,072,916     $ 20,484,202  
 
 
 
 
 
 
 
 
Emergent Group Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
 
 
 
                         
   
Three Months Ended
    
Nine Months Ended
  
   
September 30,
    
September 30,
  
   
2010
    
2009
    
2010
    
2009
  
Revenue
   $ 7,594,715     $ 7,981,464     $ 22,214,727     $ 23,105,272  
Cost of goods sold
     4,607,609       4,802,495       13,465,898       13,839,056  
Gross profit
     2,987,106       3,178,969       8,748,829       9,266,216  
Selling, general, and administrative expenses
     1,566,503       1,490,174       4,522,235       4,442,338  
Income from operations
     1,420,603       1,688,795       4,226,594       4,823,878  
Other income (expense)
                                
Interest expense, net
     (64,410 )     (85,692 )     (210,496 )     (261,681 )
Gain on disposal of property and equipment
     --       5,500       64,323       8,050  
Other income from affiliated entities, net
     --       --       190,221       --  
Other income, net
     978       76       1,923       30,336  
Total other income (expense)
     (63,432 )     (80,116 )     45,971       (223,295 )
Income before provision for income taxes and
                          
non-controlling interest
     1,357,171       1,608,679       4,272,565       4,600,583  
Provision for income taxes
     (472,755 )     (553,000 )     (1,550,044 )     (1,604,634 )
Income before non-controlling interest
     884,416       1,055,679       2,722,521       2,995,949  
Non-controlling interests in income of
                                
consolidated limited liability companies
     (174,380 )     (225,023 )     (446,277 )     (597,030 )
Net income
   $ 710,036     $ 830,656     $ 2,276,244     $ 2,398,919  
Basic earnings per share
   $ 0.10     $ 0.12     $ 0.33     $ 0.36  
Diluted earnings per share
   $ 0.10     $ 0.12     $ 0.32     $ 0.34  
Basic weighted average shares outstanding
     6,875,040       6,745,663       6,841,176       6,710,175  
Diluted weighted-average shares outstanding
     7,045,049       7,089,598       7,020,315       7,059,774  
 
 
 
 
 
 
 
 
 
Supplemental Information --
 
Reconciliation of Net Income to Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA):
 
   
Three Months Ended
    
Nine Months Ended
  
   
September 30,
    
September 30,
  
   
2010
    
2009
    
2010
    
2009
  
             
Net income
   $ 710,036     $ 830,656     $ 2,276,244     $ 2,398,919  
Depreciation and amortization
     593,796       568,549       1,773,679       1,620,057  
Amortization - stock based compensation
     78,044       63,280       220,230       170,494  
Interest expense, net
     64,410       85,692       210,496       261,681  
Provision for income taxes
     472,755       553,000       1,550,044       1,604,634  
Total
   $ 1,919,041     $ 2,101,177     $ 6,030,693     $ 6,055,785  
 
 
 
Contact:  Emergent Group Inc.
                Bruce J. Haber
                (914) 235-5550, x. 12
                bhaber@primedical.net